Department stores such as Macy's, Nordstrom and Saks are showing signs of recovery after the economic slump. 'Nordstrom is expected to post earnings of 79 cents per share for the quarter, more than doubling the 31 cents it posted in the year-ago period' (Cardona 2010). Nordstrom, Saks and Barneys are direct competitors as they cater to high-end clients whereas macy's is more in the middle-priced-ranged market like JC Penny. Nordstrom had the advantage of its robust online selling and a chain of Nordstrom Rack outlets to enjoy increasing sales even during recession. Saks was hardly hit when the luxury market fell and was not able to rebound as quickly as Nordstrom. Although Macy's is slowly getting back to its knees, it's still tough for middle-priced-ranged department stores because shoppers prefer either high-end products or those at value-oriented stores. Market segmentation involves the segregation of consumers into subsets of clients with the same needs. Example of market segmentation in the department stores is having sections for kids, women's, juniors, ethnic, plus sizes, to name a few. All the 3 department stores cover this kind of market segmentation. 'When in recession, people opt to buy either high-end brands or super discounted products' (WiseGeek). And that's where Nordstrom and Saks capitalize to rejuvenate sales. Recovery measures such as lowering prices, inventory adjustment and online selling were implemented to initiate rebound. The kind of website design techniques that Nordstrom and Saks use is both classy and informative. Macy's utilizes the search online option for easy access to their products lines. Macy's uses its American Express card,...
While both Nordstrom and Saks accept Discover, American Express, Visa and Mastercard. Macy's.com offers free shipping standard while Nordstrom has shipping charges ranging from $8 to $35 depending on how it is delivered.
Macy's Discussion Questions And Executive Summary A detailed description of the environment Macy's clothing store will face. It appears that the department stores of the previous century are dwindling in size and popularity. The environment that was once the department store's territory has been consistently infiltrated by competition from every side. There are the up and coming specialty stores, the Internet, luxury chains, wholesalers and the shopping mall. Back in the early
Macy's Corporation is a chain of middle to upper range department stores in the United States. In addition to its famous New York flagship store, the company operates over 800 stores in the United States, as well as 300 consumer electronic stores called eSpot ZoomShop kiosks. As of 2009, they posted revenues of almost $25 billion with net income of just shy of $1billion. Macy's, Inc. employees about 200,000 people,
Here are the recommendations for Nordstrom: Concentrate information systems spending on pricing analysis and execution. Clearly from the financial statements Nordstrom needs more control over pricing. The inclusion of ProfitLogic for pricing optimization is one alternative for example, to better harvest demand at the optical price point. Go after the $300+ denim market globally more aggressively and with more concerted strategies today. In their latest financials and in their latest earnings
JC Penny Makeover Background on U.S. Department Stores and Background on J.C. Penney Dr. Robert Tamilia (Marketing professor at the University of Quebec at Montreal) explains that the department store in America not only "…revolutionized the retail store," and the shopping experience, and the available of products and promotional techniques, the department store contributed in a major way to the evolution of "...hiring practices and inventory control procedures" (Tamilia, 2002, p. 3).
Retailers Nordstrom has done a number of things to help differentiate itself from other retailers. The first is with respect to the product mix. The company has made a point to put higher value brands in the Nordstrom store as part of its differentiation strategy. Nordstrom's approach has therefore been essential in building brand loyalty, by cultivating the middle class and upper middle class. It is worth noting that a brand
Customer Relationships Nordstrom, Inc. has long enjoyed a reputation for providing superior customer service. This paper examines Nordstrom strategies that the retailer employs to build customer relationships and promote customer loyalty. Nordstrom is one of the nation's leading fashion specialty retailers, with 204 stores that are located in 28 states. It was founded in 1901 as a shoe store in Seattle, and today operates 115 full-line stores, 86 Nordstrom Racks, two Jeffrey
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